JKnapp, I'm still stuck on the water filtration issue. Since I live in the area we have pretty much the same water supply so I would be interested to hear what your results are without filtering the water. I want this to work for me, but can't get over the spector of chloro-phenols.
I'm no plumber but couldn't you put some kind of Y valve on the input side of the heater and have one of the branches have a somewhat cheapo water filter (mine cost $17 at home depot and filters sediment and chlorine/chloramine) so that you can put water through the filter only when you are making beer and not filter it otherwise?